Appeal dismissed on rejected Section 9 application due to genuine dispute on operational debt.

The Tribunal dismissed the appeal challenging the Adjudicating Authority's rejection of a Section 9 application due to a genuine dispute raised by the Corporate Debtor regarding the Appellant's claim of Operational Debt. The rejection was upheld as the dispute was not resolvable in that proceeding, emphasizing the parties' ability to settle the dispute through other means. The Tribunal clarified that the rejection did not preclude alternative dispute resolution methods.

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Issues:
The judgment involves the dismissal of a Section 9 application by the Adjudicating Authority, based on a dispute raised by the Corporate Debtor regarding the Operational Debt claimed by the Appellant.

Summary:

Issue 1 - Settlement Date Relevance:
The Appellant claimed Operational Debt of Rs.97,03,395 post a settlement date of 19.03.2018, which was contested by the Corporate Debtor. The Adjudicating Authority rejected the application citing settlement between the parties and only two invoices post the settlement date.

Issue 2 - Dispute Acknowledgment:
The Appellant argued that a settlement forwarded by the Corporate Debtor acknowledged the debt, contradicting the rejection of the Section 9 application by the Adjudicating Authority.

Issue 3 - Arbitration Proceedings:
The Respondent highlighted that the issues were already under adjudication in an Arbitration Proceeding initiated by the Corporate Debtor.

Upon review, the Tribunal found that the Demand Notice and subsequent replies indicated a genuine dispute raised by the Corporate Debtor regarding the Appellant's claim. The Adjudicating Authority's decision to reject the Section 9 application was deemed appropriate as the dispute could not be resolved in that proceeding. The Tribunal clarified that the rejection did not prevent the parties from settling their dispute through other appropriate means, and hence, the Appeal was dismissed.

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